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SMALL BUSINESS
51job, Inc. Reports Second Quarter 2009 Financial Results
Second Quarter 2009 Financial Highlights:
-- Total revenues decreased 11.6% over Q2 2008 to RMB193.3 million
(US$28.3 million), exceeding the Company's guidance range of RMB175
million to RMB185 million
-- Gross margin improved to 59.8% compared with 54.9% in Q2 2008 primarily
due to the implementation of cost control and efficiency measures
-- Fully diluted earnings per common share were RMB0.37 (US$0.11 per ADS)
-- Excluding share-based compensation expense and the impact of foreign
currency translation loss, non-GAAP adjusted fully diluted earnings per
common share were RMB0.50 (US$0.14 per ADS), exceeding the Company's
guidance range of RMB0.22 to RMB0.32
-- Cash and short-term investments increased to RMB1,113.1 million
(US$163.0 million) as of June 30, 2009
Commenting on the results,
Second Quarter 2009 Unaudited Financial Results
Total revenues for the second quarter ended
Print advertising revenues for the second quarter of 2009 decreased 28.5%
to
Online recruitment services revenues for the second quarter of 2009 were
Other human resource related revenues for the second quarter of 2009
increased 17.4% to
Gross profit for the second quarter of 2009 decreased 4.2% to
Operating expenses for the second quarter of 2009 were
Sales and marketing expenses for the second quarter of 2009 decreased 7.1%
to
General and administrative expenses for the second quarter of 2009
increased 7.4% to
Income from operations for the second quarter of 2009 was
Net income for the second quarter of 2009 was
In the second quarter of 2009, the Company recognized total share-based
compensation expense of
Excluding share-based compensation expense and the impact of foreign
currency translation loss, non-GAAP adjusted income for the second quarter of
2009 was
Six Months 2009 Unaudited Financial Results
Total revenues for the six months ended
Net income for the first half of 2009 decreased to
Excluding share-based compensation and foreign currency translation loss,
non-GAAP adjusted net income for the six months ended
In
As of
Business Outlook
For the third quarter of 2009, based on current market and operating
conditions, the Company's revenue target is in the estimated range of
Other Company News
In
Currency Convenience Translation
For the convenience of readers, certain Renminbi amounts have been
translated into U.S. dollars at the rate of
Conference Call Information
Management of 51job will host a conference call at
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (GAAP), 51job uses non-GAAP measures of adjusted net income, adjusted earnings per common share and adjusted earnings per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense and foreign currency translation gain or loss. The Company believes excluding share-based compensation expense from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such expense is not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company believes excluding foreign currency translation gain or loss from its non-GAAP financial measures is useful for its management and investors as such translation gain or loss is unrelated to the Company's core business operations and will not result in cash settlement nor impact the Company's cash earnings. 51job also believes these non-GAAP measures excluding share-based compensation expense and foreign currency translation gain or loss are important in helping investors to understand the Company's current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial statements.
About 51job
51job, Inc. (Nasdaq: JOBS) is a leading provider of integrated human
resource services in
Safe Harbor Statement
Statements in this release regarding targets for the third quarter of 2009,
future business and operating results constitute "forward-looking" statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the Private Securities Litigation Reform Act of
1995. These statements are based upon management's current expectations, and
actual results could differ materially. Among the factors that could cause
actual results to differ are the number of recruitment advertisements placed,
sales orders received and customer contracts executed during the remaining
weeks of the third quarter of 2009; any accounting adjustments that may occur
during the quarterly close; fluctuations in the value of the Renminbi against
the U.S. dollar and other currencies; behavioral and operational changes of
customers in meeting their human resource needs as they respond to evolving
social, economic and political changes in
-- Financial tables to follow --
51job, Inc.
Consolidated Statements of Operations
For the Three Months Ended
June 30, June 30, June 30,
(In thousands, except number of 2008 2009 2009
shares and per share data) (unaudited)(unaudited) (unaudited)
RMB RMB USD
(Note 1)
Revenues:
Print advertising 93,946 67,169 9,834
Online recruitment services 83,287 77,386 11,330
Other human resource related
revenues 41,512 48,749 7,137
Total revenues 218,745 193,304 28,301
Less: Business and related tax (10,476) (10,102) (1,479)
Net revenues 208,269 183,202 26,822
Cost of services (Note 2) (93,867) (73,644) (10,782)
Gross profit 114,402 109,558 16,040
Operating expenses:
Sales and marketing (Note 3) (52,208) (48,491) (7,099)
General and administrative (Note 4) (31,927) (34,301) (5,022)
Total operating expenses (84,135) (82,792) (12,121)
Income from operations 30,267 26,766 3,919
Loss from foreign currency translation (6,564) (142) (21)
Interest and investment income 6,811 3,581 524
Other income (expense) (220) 649 95
Income before provision for income tax 30,294 30,854 4,517
Income tax expense (10,984) (10,085) (1,477)
Net income 19,310 20,769 3,040
Earnings per share:
Basic 0.34 0.37 0.05
Diluted 0.34 0.37 0.05
Earnings per ADS (Note 5):
Basic 0.68 0.74 0.11
Diluted 0.68 0.74 0.11
Weighted average number of common
shares outstanding:
Basic 56,576,628 55,800,083 55,800,083
Diluted 56,747,286 55,857,437 55,857,437
Notes:
1. The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB6.8302 on June 30, 2009 in New York for cable
transfers of RMB as set forth in the H.10 weekly statistical release of
the Federal Reserve Board.
2. Includes share-based compensation expense of RMB1,153 and RMB1,086
(US$159) for the three months ended June 30, 2008 and 2009,
respectively.
3. Includes share-based compensation expense of RMB992 and RMB934 (US$137)
for the three months ended June 30, 2008 and 2009, respectively.
4. Includes share-based compensation expense of RMB5,053 and RMB4,759
(US$697) for the three months ended June 30, 2008 and 2009,
respectively.
5. Each ADS represents two common shares.
51job, Inc.
Consolidated Statements of Operations
For the Six Months Ended
June 30, June 30, June 30,
(In thousands, except number of 2008 2009 2009
shares and per share data) (unaudited) (unaudited) (unaudited)
RMB RMB USD
(Note 1)
Revenues:
Print advertising 216,372 137,733 20,165
Online recruitment services 161,717 145,633 21,322
Other human resource related
revenues 77,094 88,201 12,914
Total revenues 455,183 371,567 54,401
Less: Business and related tax (22,816) (19,568) (2,865)
Net revenues 432,367 351,999 51,536
Cost of services (Note 2) (193,163) (147,736) (21,630)
Gross profit 239,204 204,263 29,906
Operating expenses:
Sales and marketing (Note 3) (107,599) (98,129) (14,367)
General and administrative (Note 4) (62,766) (67,629) (9,901)
Total operating expenses (170,365) (165,758) (24,268)
Income from operations 68,839 38,505 5,638
Loss from foreign currency translation (16,836) (111) (16)
Interest and investment income 13,056 7,214 1,056
Other income (expense) (49) 873 128
Income before provision for income tax 65,010 46,481 6,806
Income tax expense (23,451) (16,264) (2,381)
Net income 41,559 30,217 4,425
Earnings per share:
Basic 0.73 0.54 0.08
Diluted 0.73 0.54 0.08
Earnings per ADS (Note 5):
Basic 1.47 1.08 0.16
Diluted 1.47 1.08 0.16
Weighted average number of common
shares outstanding:
Basic 56,549,376 55,966,297 55,966,297
Diluted 56,724,423 56,034,144 56,034,144
Notes:
1. The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB6.8302 on June 30, 2009 in New York for cable
transfers of RMB as set forth in the H.10 weekly statistical release of
the Federal Reserve Board.
2. Includes share-based compensation expense of RMB2,162 and RMB2,297
(US$336) for the six months ended June 30, 2008 and 2009, respectively.
3. Includes share-based compensation expense of RMB1,860 and RMB1,975
(US$289) for the six months ended June 30, 2008 and 2009, respectively.
4. Includes share-based compensation expense of RMB9,475 and RMB10,065
(US$1,474) for the six months ended June 30, 2008 and 2009,
respectively.
5. Each ADS represents two common shares.
51job, Inc.
Reconciliation of GAAP and Non-GAAP Results
For the Three Months Ended
June 30, June 30, June 30,
(In thousands, except number of 2008 2009 2009
shares and per share data) (unaudited)(unaudited) (unaudited)
RMB RMB USD
(Note 1)
GAAP income before provision for income
tax 30,294 30,854 4,517
Add back: Share-based compensation
expense 7,198 6,779 993
Add back: Loss from foreign currency
translation 6,564 142 21
Non-GAAP income before provision for
income tax 44,056 37,775 5,531
Non-GAAP income tax expense (10,992) (10,085) (1,477)
Non-GAAP adjusted net income 33,064 27,690 4,054
Non-GAAP adjusted earnings per share:
Basic 0.58 0.50 0.07
Diluted 0.58 0.50 0.07
Non-GAAP adjusted earnings per ADS
(Note 2):
Basic 1.17 0.99 0.14
Diluted 1.17 0.99 0.14
Weighted average number of common
shares outstanding:
Basic 56,576,628 55,800,083 55,800,083
Diluted 56,747,286 55,857,437 55,857,437
For the Six Months Ended
June 30, June 30, June 30,
(In thousands, except number of 2008 2009 2009
shares and per share data) (unaudited) (unaudited) (unaudited)
RMB RMB USD
(Note 1)
GAAP income before provision for income
tax 65,010 46,481 6,805
Add back: Share-based compensation
expense 13,497 14,337 2,099
Add back: Loss from foreign currency
translation 16,836 111 16
Non-GAAP income before provision for
income tax 95,343 60,929 8,920
Non-GAAP income tax expense (23,464) (16,267) (2,382)
Non-GAAP adjusted net income 71,879 44,662 6,538
Non-GAAP adjusted earnings per share:
Basic 1.27 0.80 0.12
Diluted 1.27 0.80 0.12
Non-GAAP adjusted earnings per ADS
(Note 2):
Basic 2.54 1.60 0.23
Diluted 2.53 1.59 0.23
Weighted average number of common
shares outstanding:
Basic 56,549,376 55,966,297 55,966,297
Diluted 56,724,423 56,034,144 56,034,144
Notes:
1. The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB6.8302 on June 30, 2009 in New York for cable
transfers of RMB as set forth in the H.10 weekly statistical release of
the Federal Reserve Board.
2. Each ADS represents two common shares.
51job, Inc.
Consolidated Balance Sheets
As of
December 31, June 30, June 30,
(In thousands, except number of 2008 2009 2009
shares and per share data) (audited) (unaudited)(unaudited)
RMB RMB USD
(Note 1)
ASSETS
Current assets:
Cash 1,058,310 915,823 134,084
Short-term investments 16,100 197,232 28,876
Accounts receivable (net of
allowance of RMB2,783 and
RMB3,534 as of December 31,
2008 and June 30, 2009,
respectively) 19,524 16,610 2,432
Prepayments and other current
assets 44,996 46,867 6,862
Deferred tax assets, current 2,322 4,903 718
Total current assets 1,141,252 1,181,435 172,972
Long-term investments 15,927 15,921 2,331
Property and equipment 205,805 196,406 28,756
Intangible assets 4,669 6,402 937
Other long-term assets 6,311 18,653 2,731
Deferred tax assets, non-current 405 286 42
Total assets 1,374,369 1,419,103 207,769
LIABILITIES
Current liabilities:
Accounts payable 10,511 9,378 1,373
Salary and employee related accrual 22,370 17,731 2,596
Taxes payable 13,337 18,126 2,654
Advance from customers 87,639 106,578 15,604
Other payables and accruals 12,939 14,292 2,092
Total current liabilities 146,796 166,105 24,319
Deferred tax liabilities, non-current 730 1,027 150
Total liabilities 147,526 167,132 24,469
Shareholders' equity:
Common shares (US$0.0001 par value;
500,000,000 shares authorized,
56,378,139 and 55,637,163 shares
issued and outstanding as of
December 31, 2008 and June 30,
2009, respectively) 47 46 7
Additional paid-in capital 917,352 912,260 133,563
Statutory reserves 6,947 6,947 1,017
Other comprehensive income 1,054 1,058 155
Retained earnings 301,443 331,660 48,558
Total shareholders' equity 1,226,843 1,251,971 183,300
Total liabilities and shareholders'
equity 1,374,369 1,419,103 207,769
Note 1: The conversion of RMB amounts into USD amounts is based on the
noon buying rate of USD1.00=RMB6.8302 on June 30, 2009 in New York
for cable transfers of RMB as set forth in the H.10 weekly
statistical release of the Federal Reserve Board.
For more information, please contact:
Linda Chien
Investor Relations
51job, Inc.
Tel: +86-21-6879-6250
Email: investor.relations@51job.com
SOURCE 51job, Inc.